Poverty is not just caused by individual circumstances but by major inequalities built into the structure of Australian society. Some of the main causes of this inequality and poverty are access to work and income, education, housing, health and services.
A significant driver of poverty and homelessness in Australia is the rising cost of housing – as it becomes increasingly difficult to make ends meet, many families are facing financial instability and vulnerability. As of March 2023, the median national rent in Australia is $565 a week, a 13% increase since last year.
However, Australia has the 15th highest poverty rate out of the 34 wealthiest countries in the OECD – higher than the average for the OECD; higher than the UK, Germany and New Zealand. People living in poverty in Australia often miss out on essentials such as food or a roof over their heads.
The United Nations Social Policy and Development Division identifies “inequalities in income distribution and access to productive resources, basic social services, opportunities” and more as a cause for poverty. Groups like women, religious minorities, and racial minorities are the most vulnerable.
Poverty rates were highest in non-urban areas in the smallest States and Territories, including 17.7% outside the capital in Tasmania, 17.4% outside the capital in South Australia, and 15.8% in the Northern Territory.
The term "poverty traps" refers lo circumstances where the income tests in the Australian social security system trap social security recipients into dependence on Government income support.
After taking account of housing costs, on average in 2019-20 one in eight people (13.4%) and one in six children (16.6%) lived below the poverty line. Over three million (3,319,000) people lived in poverty, including 761,000 children.
There are two broad views as to why people stay poor. One emphasizes differences in funda- mentals, such as ability, talent or motivation. The other, the poverty traps view, differences in opportunities which stem from access to wealth.
The Organisation for Economic Cooperation and Development (OECD) defines the poverty line as half the median household income of the total population2. In Australia this translates to a single adult living on less than $426.30 a week. For a couple with 2 children, it was $895.22 a week1.
Key findings in the Poverty in Australia 2022 report
That amounts to 3,319,000 people. One in six children (16.6 per cent) live in poverty, which is 761,000 children. The poverty rate soared to 14.6 per cent in the March quarter of 2020 due to COVID-19 restrictions.
Poverty lines can be set as either absolute poverty lines or relative poverty lines. Australia does not have an official poverty line, either absolute or relative.
Increase wages – especially the minimum wage, to reduce inequality and leaving low-income earners behind. Rebuild employment services, to truly help disadvantaged job seekers, especially those who are long-term unemployed to find work.
Forty per cent of Australia's historically high economic inequality can be linked to the key factors of age, education, employment status, gender, disability, geographic location and place of birth, according to an Actuaries Institute research paper.
Unemployment and joblessness is a key factor behind the continuation of child poverty. But increasingly under-employment, intermittent employment and low-wage earnings are becoming more important and these are connected with the poorer prospects of parents with low skills in Australia and in many countries overseas.
There has been marked progress in reducing poverty over the past decades. According to the most recent estimates, in 2015, 10 per cent of the world's population lived at or below $1.90 a day. That's down from 16 per cent in 2010 and 36 per cent in 1990. This means that ending extreme poverty is within our reach.
The nation's highest poverty rates are found largely in the South. May 3, 2023, at 12:01 a.m.
Poverty refers to the lack of adequate financial resources such that individuals, households, and entire communities don't have the means to subsist or acquire the basic necessities for a flourishing life. This means being so poor as to struggle to obtain food, clothing, shelter, and medicines.
Families in poverty, particularly those who make their living through agriculture, may have more kids as a way of supporting the family's livelihood. Children are often tasked with chores like walking to collect water, gardening, field work and animal care, even when they're very young.
In a simple explanation: The Rich operates in Abundance mode, while the Poor operates in scarcity mode. Abundance – You give more because you are already in a better position, which in return attracts more returns. And the Rich habit effect is passed on.
There are several reasons for this development, including deindustrialisation, the ICT revolution favouring certain types of jobs, fall in unionisation, and globalisation.
Mungallala Methodist Church was built in 1964. It has now closed. In 2016, the Australian Taxation Office listed Mungallala as having the lowest mean taxable income by postcode, making it the poorest town in Australia, which led the ABC to do a documentary on the town for their online "storyhunters" program.
Is living in Australia worth it? Absolutely. Australia is a fantastic place to live, even for foreigners. There aren't only advantages to living in Australia, but they outweigh the disadvantages.
According to Oxfam, the richest 1% of Aussies have accumulated 10 times more wealth than the bottom 50% in the past decade. In its latest report, titled Survival of the richest, Oxfam found that Australian billionaire wealth is 61% higher than it was before the pandemic.